SHENZHEN, China, March 4 /Xinhua-PRNewswire-FirstCall/ -- China Nepstar Chain Drugstore Ltd. (NYSE: NPD) ("China Nepstar" or the "Company"), the largest drugstore chain in China based on the number of directly operated stores, today announced that it has entered into a license agreement with SAP AG, a global leading Enterprise Resource Program ("ERP") provider, to purchase the full SAP ERP system. Concurrently, China Nepstar has retained Abeam Co., a world-class system integrator with strong SAP implementation experience, to implement its ERP system.
Mr. Jiannong Qian, Chief Executive Officer of China Nepstar, commented, "China Nepstar's company-wide migration to SAP's state-of-the-art ERP system will further improve our management and cost controls as well as enhance our operating efficiencies. The implementation of the SAP ERP system is part of our strategy to support China Nepstar's rapid expansion and future growth in the Chinese market."
The SAP ERP system will integrate the Company's company-wide accounting and operating systems. The integration is expected to lower operating costs, improve inventory management and enhance data analysis capability. Particularly, it is expected to benefit store level data analysis to facilitate product procurement and sales promotion planning.
China Nepstar selected SAP ERP system following a rigorous review of competing software in light of the Company's business needs and growth outlook. SAP ERP system has already been installed by many established international and Chinese retailers such as Walmart, MatsuMoto Kiyoshi, and China Suning Corporation.
The Company plans to install the SAP ERP system in phases commencing in the fourth quarter of 2008. The installation is expected to be completed in 2009.
About China Nepstar Chain Drugstore Ltd.
China Nepstar Chain Drugstore Ltd. (NYSE: NPD) is China's largest retail drugstore chain based on the number of directly operated stores. As of December 31, 2007, the Company had 2,002 stores across 62 cities, one headquarter distribution center and 11 regional distribution centers in China. China Nepstar uses directly operated stores, centralized procurement and a network of distribution centers to provide customers with high-quality, professional and convenient pharmacy services and a wide variety of other merchandise, including over-the-counter ("OTC") drugs, nutritional supplements, herbal products, personal care products, family care products, and convenience products including consumables. China Nepstar's strategy of competitive pricing, customer loyalty programs and private label offerings has enabled it to capitalize on the robust economic growth in China and to take advantage of the demographic trend in China to achieve a strong brand and leading market position. For further information, please go to http://www.nepstar.cn .
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
For more information, please contact:
In China:
Lucia Qian
China Nepstar Chain Drugstore Ltd.
Marketing and IR Director
Tel: +86-755-2641-4065
Email: qianrt@nepstar.cn
In the United States:
Dixon Chen
The Global Consulting Group
Investor Relations
Tel: +1-646-284-9403
Email: dchen@hfgcg.com
Ivette Almeida
The Global Consulting Group
Media Relations
Tel: +1-646-284-9455
Email: ialmeida@hfgcg.com